What conditions make an employee ineligible to receive gratuity?

Dear Questioner,

The worker is deprived of the entire service reward if he is dismissed from service for one of the reasons stated in Article 120.

- Article 120:

The employer may dismiss the worker without warning in any of the following cases:

A. If the worker assumes a false identity or nationality, or submits forged certificates or documents.

B. If the worker is under probation and dismissal occurs during or at the end of the probation period.

C. If the worker commits a mistake resulting in a serious financial loss to the employer.

D. If the worker violates instructions related to work or workplace safety, provided that these instructions are written and posted in a visible place and communicated orally if he is illiterate.

E. If the worker does not perform his basic duties in accordance with the employment contract and continues to violate them despite an investigation and a warning of dismissal if he repeats the violation.

Hello,

Under UAE law, you are obligated to pay gratuity to employees who complete one year of continuous service even if they resign. The amount is based on their salary and service duration.

While employee behavior doesn't directly impact gratuity, the Labor Law allows employers to take disciplinary action against employees for misconduct, including warnings, pay deductions, or even termination (depending on the severity).

For further clarification, kindly share your WhatsApp number.

They can take action for the misbehavior of the employee legally, but they cannot hold the gratuity.

Dear Questioner,

In the UAE, there are specific conditions where an employee might not be eligible for gratuity.

Here are some key points:

- Less than one year of service: Employees who haven't completed at least one year of continuous service are not entitled to gratuity.

- Termination due to misconduct: If an employee is terminated due to severe misconduct that breaches their employment contract (gross negligence, theft), they may lose gratuity entitlement. The severity is determined by the court.

However, employee abusiveness towards the company or employer itself wouldn't necessarily disqualify them from gratuity. The law focuses on breaches of contract and job duties.

Here's why an employer can't simply withhold gratuity based on behavior:

- Gratuity is a legal right: The UAE Labour Law guarantees gratuity under specific service conditions. An employer cannot withhold it without a legal reason.

- Court involvement: Disputes over gratuity are settled in court. If an employer feels the employee's behavior warrants them not receiving a gratuity, they would need to present a case in court. The court would then decide based on the severity of the misconduct and its connection to the employee's job duties.

In short, abusive behavior might be grounds for disciplinary action, but it likely wouldn't disqualify an employee from gratuity unless it constituted a severe breach of contract impacting their job performance.

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The conditions under which an employee may not be eligible to receive gratuity vary based on the employment laws.

Generally, an employee may not be eligible to receive gratuity if they are terminated for gross misconduct or if they voluntarily resign without giving proper notice as per employment contract terms.

If an employee is abusive towards the company or employer, the employer may be able to withhold or deny gratuity payment, depending on the specific circumstances and legal provisions governing gratuity in that jurisdiction.

However, the employer may need to provide evidence of the employee's abusive behavior and show that it directly impacts the payment of gratuity.

In some cases, the employer may be required to seek legal intervention, such as requesting a court order to withhold gratuity payment, based on the specific laws and regulations in place.

It is not permissible to withhold end-of-service rights from an employee, regardless of their actions or errors.